Wealth Management's Next New Thing – Naturally!

"Wall Street got drunk," President Bush explained. It just couldn't resist all those "fancy financial instruments." Now Wall Street is hung over and talking sobriety.

Will Wall Street relapse? The President seemed to feel the question is when, not if. Increased regulation may offer some protection.. But we probably won't see many arrests for DDUI (Dealing Derivatives Under the Influence).

So how can investors protect themselves? By practicing "Natural Investing."


A Natural Portfolio will consist solely of plain vanilla stocks and investment-grade bonds. Period. (To diversify small accounts, a couple of inexpensive index funds may be necessary – but they'll have to be certified "100% unenhanced.")

Cash will be stowed only in T-bills, or in money-market funds invested in same.

Natural Investing should be an easy sell:

Understandable. Modern businesses aren't simple, but owning their shares has got to be more meaningful than holding the derivatives Tom Wolfe derides as "evaporated cubed."

Educational. Entrepreneurs who cash out will learn the ropes of investing better with a Natural Portfolio. So will lucky heirs. And their education will most likely cost them a lot less than trading sector ETFs.

Socially appealing. Natural investing should attract those who favor natural foods or protecting the environment. (Fight Financial Contamination! No Derivatives!)

Natural Investing! Remember, you heard it here first.